Financial Release

Outlines Initiatives to Achieve More Than $400 Million in Cost Reductions in Fiscal 2009

NEW YORK--(BUSINESS WIRE)--Dec. 4, 2008--Starbucks (NASDAQ:SBUX) hosted its biennial Analyst Conference here
today, updating the financial community on the company's plan to build
and improve its business and operations in the face of current
conditions. The company's plan includes increased store and operating
efficiencies, additional cost reductions and delivering long-term growth.

Howard Schultz, Starbucks chairman, president and ceo, opened the
conference by reaffirming the company's commitment to its core values
and principles. He outlined an operating approach that includes
maintaining the loyalty of core customers through continued innovation
and rewards, raising the bar on operational excellence and taking an
aggressive approach to cost savings.

"The entire retail sector is operating in a very tough economic
environment. While Starbucks has not been immune to the decline in
consumer confidence, we are fortunate to have a world-class brand and a
loyal customer base," said Schultz. "In this environment it is critical
to put our feet in the shoes of our customers."

Schultz commented further, "We generate strong cash flow, have solid
liquidity and are executing rigorous cost-containment initiatives to
improve our bottom line. Starbucks will continue to take actions to
improve our U.S. business and take advantage of targeted growth
opportunities in high potential markets. Integral to this are our
efforts to elevate the Starbucks Experience and staying true to
our core values. This focus will help us emerge stronger, more efficient
and better able to deliver value to our shareholders over the long term."

Highlights of the other presentations included:

-- CFO Troy Alstead shared further details about the role the economy is
expected to play in fiscal year 2009 forecasts, including projected
weakness during the holiday period, and the steps being taken to enhance
profitability. Alstead outlined additional changes being made to the
company's cost structure in order to position Starbucks to perform in
the periods ahead; changes that are expected to result in an additional
$200 million in savings for a total of more than $400 million in savings
in fiscal 2009 alone.
-- Michelle Gass, executive vice president, Marketing and Category, and
Terry Davenport, chief marketing officer, outlined initiatives to
enhance Starbucks brand relevance for all consumers. They also discussed
the success of new value-based initiatives, including the Starbucks Gold
Card, and the encouraging results of recent opportunistic marketing
programs. They elaborated on customer feedback that has helped put
value, health and wellness and social responsibility at the forefront of
innovations, and on significant gains in brand perception measurements
over the past six months.
-- Cliff Burrows, president, Starbucks Coffee U.S., reviewed specific
actions being taken to address performance-driving initiatives at the
store level. During his presentation, he stated: "We are focused on
making our existing stores perform better every day. With a rationalized
store portfolio, we will improve profitability by implementing
operational efficiencies at every step in the supply chain as well as
within each store." He also discussed the company's diversified revenue
mix, including its consumer packaged goods, food service and licensed
stores businesses, as well as its Seattle's Best Coffee brand.
-- Martin Coles, president, Starbucks Coffee International, addressed the
effects the economic crisis is having on overseas markets, and the
actions being taken to stabilize Starbucks performance in the U.K. and
Canada, as well as ongoing expansion of the company's low investment
licensed international store model.

The event concluded with remarks from Schultz, highlighting the true
differentiator for Starbucks: the daily, human connection between
customers and store partners. Sharing highlights from the recent North
America Leadership Conference in New Orleans, Schultz spoke about the
company's partners (employees) and their passion to serve customers and
enhance their experiences with Starbucks, as well as their commitment to
the company's long-term success.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting the highest quality arabica coffee in the
world. Today, with stores around the globe, the company is the premier
roaster and retailer of specialty coffee in the world. Through our
unwavering commitment to excellence and our guiding principles, we bring
the unique Starbucks Experience to life for every customer
through every cup. To share in the experience, please visit us in our
stores or online at www.starbucks.com.

Forward-Looking Statements

This release contains forward-looking statements relating to certain
company initiatives and plans, as well as trends in or expectations
regarding, the expected effects of its transformation strategy,
restructuring and other initiatives, operating cash flow, revenue
growth, store openings, as well as expense control and other anticipated
cost savings. These forward-looking statements are based on currently
available operating, financial and competitive information and are
subject to a number of significant risks and uncertainties. Actual
future results may differ materially depending on a variety of factors
including, but not limited to, coffee, dairy and other raw material
prices and availability, fluctuations in U.S. and international
economies and currencies, successful execution of the company's
transformation strategy, restructuring and other initiatives, store
traffic trends, the impact of competition, the effect of legal
proceedings, and other risks detailed in the company filing with the
Securities and Exchange Commission, including the "Risk Factors" section
of Starbucks Annual Report on Form 10-K for the fiscal year ended
September 28, 2008. The company assumes no obligation to update any of
these forward-looking statements.